June has proven to be a difficult month for Ethereum holders, as the popular altcoin has experienced a sharp decline of almost 15% in market value within just two weeks’ time. Amidst this downturn, Ethereum’s price reached a low of $1624.65, finding support along a long-established trendline. This dynamic support has been critical in maintaining an uptrend for Ethereum’s price over the last seven months. Now, one can’t help but wonder whether buyers will be able to initiate a new recovery rally from this point.
The falling Ethereum price discovered reliable support at the ascending trendline on the daily chart. Historical data shows that the price has bounced back from this support on three separate occasions, which suggests that buyers are actively accumulating during dips. On June 15th, Ethereum’s price rebounded from the rising trendline, experiencing a 2.3% surge and reaching a current trading level of $1668. This reversal could potentially present buyers with an opportunity to capitalize on the dip, with a suggested stop loss set at $1625.
If the coin price can maintain its position above the trendline, buyers may gradually drive a recovery past the $2140 peak. A retest of the long-established support trendline has a high probability of reigniting bullish momentum, leading to a new recovery phase. However, traders seeking a safer entry point might prefer to wait for a breakout above a significant resistance level. A potential breakout beyond the $1775 barrier could provide buyers with additional confirmation of a bullish recovery, possibly sending the price towards the previous swing high of $2138.
A few key factors could influence Ethereum’s price in the short term. The Relative Strength Index (RSI) slope on the daily timeframe is currently below 40%, indicating high bearish momentum. Traders might want to wait for a breakout above $1775 to gain a more robust edge in their decision-making process. Additionally, the exponential moving averages (EMAs) reveal that a bearish crossover between the 20-day and 100-day EMAs could further intensify selling pressure in the market.
Ethereum’s future trajectory remains uncertain, with potential for both recovery and further decline. It’s essential for investors to keep an eye on market conditions and key indicators, as well as to conduct thorough market research before committing to any investments in cryptocurrencies. As always, the author and publication hold no responsibility for any personal financial losses incurred.
Source: Coingape
